Effective August 6, 2025, SB 25-083 significantly limits the ability for Colorado employers to use restrictive covenants in their agreements with “health-care providers.” Specifically, SB 25-083 expressly prohibits non-compete agreements for all physicians, advanced practice registered nurses, dentists and certified midwives for the protection of the business’ trade secrets. This means that health care employers cannot prevent any of these “health-care providers” from working for competitors after leaving their current employment if engaging in the practice of medicine.
SB 25-083 also excludes healthcare providers from the exemption that allows reasonable non-solicitation agreements with workers making at least 60% of the threshold for highly compensated workers for the purpose of protecting a business’ trade secrets.
Finally, SB 25-083 makes sure that healthcare workers can tell their patients where they are working next, so that patients can keep seeing them, if they wish. The law specifies that a restrictive covenant is barred if it “prohibits or materially restricts” a departing healthcare provider’s ability to disclose to current patients that they are continuing to practice, their new contact information and the patient’s right to choose their medical providers.
The bill, however, did not carve out the ability to include non-compete agreements when buying or selling a business.
Colorado employers should update existing rules and guidance to conform with this bill. Employers, particularly in the healthcare industry, should review existing employment agreements to ensure compliance with the new regulations and revise the same before this law goes into effect on August 6, 2025.